Monday, July 11, 2011

Playing Chicken with the Debt

 I saw this on Rick's blog and am putting it up here too... mostly so I can point students to it in future. Good one pager from the Economist on the debt.

And the closer you look, the more unprincipled the Republicans look. Earlier this year House Republicans produced a report noting that an 85%-15% split between spending cuts and tax rises was the average for successful fiscal consolidations, according to historical evidence. The White House is offering an 83%-17% split (hardly a huge distance) and a promise that none of the revenue increase will come from higher marginal rates, only from eliminating loopholes. If the Republicans were real tax reformers, they would seize this offer.

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